United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Benefits Administration Letter 

Number: 08-203 Date: June 27, 2008 

Subject: Federal Employees’ Group Life Insurance (FEGLI): Additional Continuation of 

Life Insurance Coverage for Federal Employees Called to Active Duty 

Background 

Public Law 110-181, the Department of Homeland Security Appropriations Act, was enacted 

January 28, 2008. Section 1102 of the Act authorizes the continuation of FEGLI coverage for up 

to 24 months for Federal employees called to active duty. This provision is effective January 28, 

2008. The purpose of this Benefits Administration Letter (BAL) is to provide instructions for 

implementing this provision of the new law. 

Currently, if an insured employee is in nonpay status on the agency rolls while on active duty, 

FEGLI coverage continues free for 12 months. If an employee separates to go on military duty, 

for FEGLI purposes he/she is considered to be in nonpay status. FEGLI continues free for 12 

months or until 90 days after military service ends, whichever date comes first. At that time, the 

coverage terminates, subject to a 31-day extension of coverage and the right to convert to an 

individual policy. 

The new law allows employees who enter on active duty, or active duty for training in one of the 

uniformed services for more than 30 days, to continue their FEGLI enrollment for an additional 

12 months, for a total of up to 24 months. However, employees must pay both the employee and 

agency share of premiums for their Basic coverage, and pay the entire cost (there is no agency 

share) for any Optional insurance for the additional 12 months of coverage. 

What Do Agencies Need to Do? 

Agencies must immediately notify all affected employees, particularly those who are currently in 

nonpay status, concerning the opportunity to continue their coverage for the additional 12 

months. Agencies must also provide employees an election notice so they may elect the 

continued coverage. We encourage agencies to work with newly activated employees to make 

their elections before leaving for active duty service. We have attached a sample notice agencies 

may use to allow employees to make their elections. 

What Do Employees Need to Do to Continue Coverage for an Additional 12 Months? 
When the employing agency is notified that an employee has been called to active duty, the 

affected employee will receive a notice from the agency giving them the opportunity to continue 

coverage for the additional 12 months. If employees wish to continue coverage, they must 

indicate their choice on the notice, and return it to the employing office. Employees may make 

their elections at any time before the end of their first 12 months in nonpay status; however, we 

strongly urge agencies to encourage employees to submit their elections before leaving for active 

duty service. 

What Should an Employee Do if the Employee Does Not Wish to Continue Coverage? 

Employees who do not wish to continue coverage should submit the notice indicating their 

election for coverage to terminate at the end of 12 months in nonpay status. FEGLI coverage 

will continue free for 12 months in nonpay status, after which it will terminate, subject to the 31-

day extension of coverage and the right to convert to an individual policy. Agencies must follow 

the usual rules and prepare the SF 2821 “Agency Certification of Insurance Status,” the SF 2819 

“Notice of Conversion Privilege,” and a memo indicating the reason for the termination, and 

attach it to the most recent SF 2817 Life Insurance Election” in the employee’s file. It is 

important that agencies give employees the information necessary to convert the FEGLI 

coverage. 

What Happens If the Employee Elects to Continue Coverage? 

Whereas employees receive the first 12 months of coverage free, employees who elect to 

continue FEGLI coverage for the additional 12 months must agree to pay both the employee and 

agency shares of premiums for Basic coverage and the entire premium for any Optional coverage 

for the additional 12 months of coverage. 

Agencies must have a system in place to accept premium payments from each affected 

employee. There is no provision in the law for agencies to pay the employee share of the FEGLI 

premiums. Agencies should forward the FEGLI premiums to the Employees’ Life Insurance 

Fund as they customarily do for their other employees via standard payroll procedures, for each 

pay period the employee has coverage. 

What Happens If the Employee Does Not Complete or Submit a Completed Notice to 

Continue Coverage? 

If the employee does not submit a completed notice, the FEGLI coverage will end at the end of 

the first 12 months, subject to the 31-day extension of coverage and the right to convert to an 

individual policy. Agencies must prepare the SF 2821, SF 2819, and a memo indicating the 

reason for the termination and attach it to the most recent SF 2817 in the employee’s file. Again, 

it is important that agencies give employees the information necessary to convert the FEGLI 

coverage. 

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Can An Employee on Active Duty Submit the Notice AFTER the First 12 Months of Free 

FEGLI Coverage Has Terminated? 

The notice must be submitted before the first 12 months of FEGLI coverage terminates, with one 

exception: in the case of employees on active duty in nonpay status whose first 12 months of 

free coverage terminated on or after the law’s effective date of January 28, 2008 but before they 

were notified of the opportunity to elect to continue coverage for an additional 12 months, 

employing agencies must offer these employees the opportunity to elect to continue coverage for 

the additional 12-month period. Employees must be notified of this opportunity via the 

procedures described above. Employees must respond within 60 days of receiving the notice. 

The employee’s terminated coverage will be reinstated retroactively to the effective date of 

termination for a period of 12 additional months on a self-pay basis. Agencies must notify 

employees of the effective date of their coverage, premium payment amount, and where 

employees must send premiums. Payment must be received within 30 days of receiving such 

notice. If no payment is received, the election is void and treated as if no election was ever made 

and coverage was never reinstated. 

What If the Employee is Currently on Active Duty? 

If the employee is still in the first 12 months of free FEGLI coverage, he/she can elect to 

continue coverage for an additional 12 months. Agencies must notify the employee of the 

opportunity to continue coverage for an additional 12 months before the first 12 month period 

expires. 

What Happens When Employees Return to Work? 

When employees return to work in a pay and duty status, FEGLI coverage will be reinstated at 

the same level that was in place when the employee went into nonpay status. Even if the 

employee declines to continue coverage for the additional 12 months, reduces some or all of the 

coverage, or allows coverage to terminate due to non-payment, the terminated coverage will be 

reinstated at the same level that was in place when the employee first entered nonpay status or 

separated for military service. When the employee returns to pay and duty status, agencies 

should carefully review FEGLI coverage history to ensure this original coverage is reinstated 

correctly. 

Can an Employee Choose to Cancel Some or All of Their Insurance Coverage During the 

Second 12 Months of Coverage? 

Employees may cancel some or all of their coverage at any time. However, if an employee 

elects to continue coverage after the first 12 months of nonpay status, then wishes to cancel some 

or all of the coverage, the employee must do so by notifying the agency in writing. Notification 

should not be made on the SF 2817 “Life Insurance Election,” because this written request to 

end coverage only applies to coverage during the 24 –month nonpay period. Coverage canceled 

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will be subject to the 31-day extension of coverage and the right to convert to an individual 

policy. 

How Do Agencies Certify The Coverage if The Employee Dies in the Second 12 Months? 

If an employee elects to continue coverage and dies during the second 12 months, agencies 

should certify the coverage to OFEGLI by checking “Other” in Part 4a of the SF 2821, and 

referencing Public Law 110-181 in the remarks section of the form to explain why the employee 

has the continued coverage. 

Does This Law Include An Active Duty Employee Whose FEGLI Coverage Terminated 

Before January 28, 2008? 

No. An employee whose FEGLI coverage terminated due to the end of 12 months in nonpay 

status before the law was passed is not eligible for the additional coverage period. 

What If An Employee Has Already Converted Coverage? 

The new provision of law applies prospectively to those individuals who currently are enrolled in 

FEGLI, not those enrolled in private insurance. Employees who have already converted 

coverage are not eligible for the additional 12 months of coverage. Employees who are still 

within their first 12 months of nonpay status and who are enrolled in FEGLI may elect to 

continue their FEGLI coverage for the additional 12 months. 

Can We Offer This Additional 12 Months of Coverage To Other Employees Who Will Be 

On LWOP Longer Than 12 Months for Reasons Other Than Active Military Duty? 

No. The new law ONLY applies to employees who enter on active duty or active duty for 

training on a call or order for more than 30 days in one of the uniformed services. 

Additional questions and answers on Public Law 110-181 and additional guidance will be posted 

on the FEGLI website at www.opm.gov/insure/life. 

If you have any questions, please email FEGLI@opm.gov. 

Kathleen M. McGettigan 

Deputy Associate Director 

Center for Retirement and Insurance Services 

Attachment

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SAMPLE NOTICE AND ELECTION FORM 

FEDERAL EMPLOYEES’ GROUP LIFE INSURANCE (FEGLI) PROGRAM 

ELECTION FORM: EXTENSION OF COVERAGE WHEN CALLED TO ACTIVE 

DUTY 

Name of Employee: _____________________________ Date: _____________________ 

You must make your election on this notice and return it to the employing office before the 

end of your 12 months in nonpay status or your FEGLI coverage will automatically terminate 

at that time. 

Public Law 110-181, the Department of Homeland Security Appropriations Act, enacted January 

28, 2008, authorizes the continuation of FEGLI coverage for an additional 12 months, up to a 

total of 24 months, for Federal employees called to active duty in the uniformed services. 

We have determined that you are eligible to continue your FEGLI coverage. 

Currently, if you are in a nonpay status on the agency rolls while on active duty, the FEGLI 

coverage continues free for 12 months. If you separate to go on military duty, for FEGLI 

purposes, you are also considered to be in nonpay status. FEGLI continues free for 12 months or 

until 90 days after military service ends, whichever date comes first. At that time, the coverage 

terminates, subject to a 31-day extension of coverage and the right to convert to an individual 

policy. 

The new law allows you to continue FEGLI coverage for an additional 12 months. Then, it will 

end with a right to convert to an individual policy. During the additional 12 months of coverage, 

you must pay both the employee and agency share of premiums for Basic coverage and the full 

premium for any Optional coverage (there is no agency contribution). The new law allows 

coverage to continue only for the additional 12 months. 

You have two choices: (1) Elect to have your FEGLI coverage terminate at the end of the first 12 

months of nonpay status or (2) elect to continue the coverage for an additional 12 months and 

agree to pay the premiums for this additional time period. 

If you wish to continue your FEGLI coverage for an additional 12 months, you must agree to the 

following terms and conditions. Please indicate your election on this notice by writing your 

initials next to your election, and print your name and sign your full signature where requested. 

 

TERMINATION: If you indicate in the notice that you elect to terminate your FEGLI coverage 

at the end of the first 12 months in nonpay status or if we do not receive a completed election 

form from you prior to the end of the first 12-month period, your FEGLI coverage will be 

terminated at the end of 12 months in nonpay status. Your coverage will continue for an 

additional 31 days at no cost to you. During those 31 days, you will be eligible to convert to an 

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individual policy and you will be given information regarding your right to convert to an 

individual policy. 

CONTINUATION: If you elect to continue your FEGLI coverage, you must pay the premiums, 

both the employee and agency share, for Basic coverage and the full premium for any Optional 

coverage, for the additional 12 months of coverage. You must make payment arrangements 

with your employing agency before you leave for active duty service. 

I have read this notice, and I understand my choices. 

___________ I elect to terminate my FEGLI coverage at the end of 12 months in nonpay status, 

subject to a 31-day extension of coverage and the right to convert to an individual 

policy. I understand that the coverage will be reinstated automatically upon my 

return to work in pay and duty status in a FEGLI-eligible position. 

___________ I elect to continue my FEGLI coverage for an additional 12 months after 

completion of my first 12 months in nonpay status. By choosing to continue 

coverage I agree to pay the applicable premiums, both the employee and the 

agency share for Basic coverage and the full premium for any Optional coverage, 

for each additional month after the first 12 months in nonpay status. My failure to 

pay the premiums within the required timeframe will constitute a voluntary 

cancellation of my coverage, subject to the 31-day extension of coverage and the 

right to convert to an individual policy. 

________________________________________ 

(Employee’s Name – Please Print) 

________________________________________ ______________________ 

(Employee’s Signature) (Date) 

________________________________________ 

(Employing Agency Representative Name) 

________________________________________ ________________________ 

(Employing Agency Representative Signature) (Date) 

 

If you have any questions, contact _________________________ at ________________. 

[Insert name and phone number of agency contact]

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